Retail sales growth to slow: Deloitte

Deloitte Access Economics expects retail sales growth will slow in 2016 after a more positive performance last year.

Australian retailers could bear the brunt of the uncertainty that is gripping the global economy, more so if China's economy slows more sharply than predicted.

That's the view of consultants Deloitte Access Economics, coming after retail sales performed well last year.

"While the solid gains over 2015 were an achievement, early 2016 is producing a turbulent global backdrop, posing challenges for the sector this year," Deloitte partner David Rumbens said in the latest Retail Forecasts report.

Mr Rumbens believes the effects of interest rate cuts and the boom in the housing cycle in Australia are winding down, but says lower petrol prices does mean more room in the consumer budget for other spending and that will support confidence.

However, retailers will face pressure from a lower Australian dollar as it will increase the cost of imports.

The report forecasts real, or inflation-adjusted, retail sales growth to slow to 2.4 per cent in 2015/16 after 3.3 per cent in 2014/15.

In 2016/17 it expects growth of 2.3 per cent.